Market Snapshot: Commercial Property Vacancy Rates in Sydney

As a commercial property owner and investor, it’s wise to have an awareness of what’s going on in the market at any given time. We like to take market snapshots to help our clients stay in the know. These snapshots can help you to know when is a good time to invest, how to allocate your resources, and where to look for your next acquisition.

Property Vacancy Rates Sydney

Vacancy rates represent the percentage of all available units that are vacant at a particular time. In commercial real estate, the vacancy rate reflects the percentage of units that are currently vacant and ready to be rented as well as those that are vacant because they’re in need of repairs and renovations before they can be filled again.

You can calculate the vacancy rate by taking the number of vacant units, multiplying that figure by 100, and then dividing the result by the total number of units. Investors often look to the vacancy rate to determine a market’s vitality. So let’s take a look at property vacancy rates in Sydney.

Office Vacancy Rates

According to the Property Council of Australia, both Sydney and Melbourne CBDs have continued to show strong office market performance. Sydney’s office space vacancy rate is a low 6.2 per cent, while Melbourne’s rate is 6.4 per cent.

Industrial Vacancy Rates

The industrial sector of Sydney’s commercial property is experiencing even lower vacancy rates, according to m3 Property Strategists. As of June 2016, the industrial vacancy rate was just 4.9%, up from 4.1% at the end of 2015. These rates are forecasted to remain stable in the coming year.

With vacancy rates as low as they are, commercial property owners in Sydney are finding that it’s not difficult to fill their properties and keep tenants from leaving. It’s a great time to enjoy the stability and income of our commercial property market.

Property Manager in Sydney

Sydney commercial property owners have a lot on their plates. Many have other businesses to run or day jobs that consume most of their time and energy. Other property owners have multiple sites to oversee, with all of the logistics and details required by each property.

How can you manage all of this? You don’t have to. Finding the right property manager for your commercial properties can give you the time and freedom you need to pursue other interests and projects. Your property manager can handle leases, vacancies, maintenance, finances, and repairs.

If you’d like to learn more about property management for your commercial properties, reach out to us at Nutshell. We’d love to talk.

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